I am purchasing a short sale home in "Houston, Texas" and it has been approved twice..
the problem that i am facing is from the seller.
Seller has got in a divorce and has a divorce decree stating that he is awarded the house and if he does sell it the ex-wife gets half of the proceeds.. (in a short sale there is no proceed).
we scheduled a closing however the ex-wife did not show to sign, she is doing it out of spite. basically I can not close on the home if she does not sign. title company will not accept the divorce decree with only the husband signing due to the verbiage that states "ex-wife gets half of proceeds" title company says that still shows she has interest in the home and nulls the statement of him being awarded the house.
by now we our short sale approval has expired and we have re-submitted it and received another approval. and we are trying to convince the ex-wife to sign at closing or sign a special warranty deed. she requested $2000 and ex-husbands lawyer and ex-wifes layer agreed to exchange the money and have her sign a special warranty deed. after the money has been sent and cashed and no signing of the special warranty deed her lawyer stated that she does not represent her amymore.
I dont know what to do.. need some help.. I am already packed and have things in storage from the first attempt at closing and living with family now because we moved from our place expecting to move in after the first closing.
we have another approval from BofA and trying to close again.
is there anyway BofA legal department can handle this since they have interest in the home?
or change the short sale to deed lieu foreclosure?
any advice or feedback would be helpful.
thanks
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Thanks guys..
i just found that they were both at content of their divorce decree... he owed $2,000 to her (judgement) which he just paid, and she is soley at content due to her not signing. Husband is going to file for content or motion to enforce and we are going to see where that takes us.
Wow my friend, its not an easy one, but I have tons like that... and I ussually get creative.
Go look for the wife and find her. Talk to her and explain the situation. Sometimes humans understand and she may be able to understand your position. You are just right there, dont give up, but start having a PLAN B just in case.
Regading the "side deal" it is true, so keep it away from BofA, my advise may be unethical, but what are you going to do know? mail it to them? just move forward and remember you have been blackmailed by someone that wanted 2K. Talk to her, earn her trust and get her to sign!
This is how most agents close our short sales... Realtor skills are just 50% / survival are the other 50%. Sad but true...
George -
You said a couple of things:
"the ex-wife did not sign listing or sales agreement, ex-wife is just on title but not on mtg." The Ex-wife being on Title - that's a BIG DEAL - No matter what type of transaction (other than foreclosure) the ex-wife MUST sign the Deed to transfer Title - that includes a Deed in Lieu.
Because the ex-wife didn't sign the Listing Agreement or the Purchase Agreement that's a problem too since she is on the Title. Unfortunately, the ex-husband cannot do anything with this property unless the wife signs.
BofA's only "interest" in the property is they are owed money via the Note which sounds like it's in the ex-husbands name only. BofA will not get involved because they can just "take" the property without the drama of the fighting ex's.
Quite frankly, you probably need to get an attorney for yourself and get out of this transaction and get your money back ASAP. You should not have been advised to proceed without all of the owners signatures (ex-husband and ex-wife)
Where is your REALTOR ? I hope you did not use the Listing Agent as YOUR agent.
If you want to discuss, call me at 888-391-5245.
Thom Colby
Broker / Negotiator
Newport Beach CA
(formerly Houston TX)
Thanks guys..
"the ex-wife did not sign listing or sales agreement, ex-wife is just on title but not on mtg."
can the legal department of bofa do anything since they have interest in the home?
and can a short sale be changed to deed of lieu of foreclosure?
George,
I'm so sorry for your troubles. Harry said it perfectly - there is obviously some issues between the ex's and it sounds like the ex-wife has an axe to grind (who knows, maybe for good reason or maybe not). I wonder if she would feel the same way if the decree said she would have to share in any "loss" as well. In any case - their issue with each other shouldnto be your issue.
Here's something to have YOUR attorney look into - Did both the ex-husband and the ex-wife sign the Listing Agreement? If they did, then they both agreed to cooperate with the sale by signing the Listing Agreement. If she did not, the Listing Agent and Broker may have a problem. Although the husband was awarded the house in the divorce decree, she is still legally on Title and very likely on the loan.
The Title company is correct in not closing the transaction - if they did, they would have to cover any loss by way of the Title Policy they will be issuing.
As for the $2,000 being paid through the attorneys - that's a touchy one..... it is caused due to the sale of the property and could be seen by BofA as a "side deal". Yes we all know it's becasue the ex-wife won't cooperate and it's a divorce settlement thing - but the divorce is already settled so BofA could see it differently. I suspect BofA would allow it if they were told - and it should not be "hidden".
I've sold Real Estate in Southern California and in Houston Texas for many years, and I've seen it all.... including this exact situation (in both places!). Unless the sellers can get it resolved quickly, I don't think you will be closing any time soon.
You REALLY need to talk to YOUR REALTOR and consult with an ATTORNEY for YOU, about getting your deposit back along with any costs you may have paid. You also may have a case against the Sellers and the Listing Agent / Brokerage.
Best of luck,
Thom Colby
Broker / Negotiator
Newport Beach CA